Tax news: page 4
- October 2024
Autumn Budget unveiled £40bn of tax rises and froze IHT thresholds until 2030
Rachel Reeves' Autumn Budget set out £40bn of tax rises and froze inheritance tax thresholds until 2030, with the next fiscal statement due on 26 March.
Capital gains tax rates on assets increased
Capital gains tax on assets rose to 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, taking effect immediately after the Autumn Budget.
Inheritance tax freeze extended until 2030
Inheritance tax thresholds that were due to stay frozen until 2028 will now remain unchanged until 2030, keeping the £325,000 nil-rate band and residence allowances at their current levels.
October 2024 Budget announced pensions to enter inheritance tax from April 2027
Pensions will be brought into inheritance tax calculations from April 2027 under Budget reforms, a change expected to raise nearly £1.5bn in 2029-30 and affect around 8% of estates.
Option 2 recommended for the 2024 Regulations
The Scottish Government has recommended uprating the earnings arrestment tables with minor banding reform, raising the protected minimum amount from £655.83 to £750 a month from 6 April 2025.
Secondary Threshold reduced to £5,000 and secondary Class 1 rate raised to 15% announced
The Secondary Threshold for employer National Insurance will fall to £5,000 and the secondary Class 1 rate will rise to 15% from 6 April 2025, under regulations giving effect to Autumn Budget 2024.
Unspent pension pots to be included in estates for inheritance tax from April 2027
Unspent pension pots will count towards a person's estate for inheritance tax from April 2027, under a change announced in the 2024 Autumn Budget.
- August 2024
Corrections to 2021 to 2022 personal allowance and England, Northern Ireland and Wales bands
HM Revenue & Customs has corrected the 2021 to 2022 personal allowance to £12,570 and the basic and higher rate band figures for England, Northern Ireland and Wales.
Alcohol duties frozen until August 2024
Alcohol duties are frozen until August 2024, following a simplification of the way alcohol is taxed that took effect in summer 2023, according to Which?.
- July 2024
HMRC figures show two million more higher-rate taxpayers since 2021-22
HMRC figures show the number of higher-rate income taxpayers in England, Wales and Northern Ireland rose from 4.43 million in 2021-22 to 6.31 million in 2024-25, a 42% increase.
- May 2024
Regulations made abolishing tax credits for state pension age claimants
Regulations made on 7 May 2024 end tax credit awards for claimants who have reached state pension age, moving some to universal credit and others to pension credit with transitional protection.
Annual survey of English Council Tax Reduction schemes for 2024/25 published
entitledto's annual survey of English Council Tax Reduction schemes found 41 of 296 local authorities changed how they calculate support for 2024/25, with more raising help than cutting it.
Conservative Party announces 'triple lock plus' policy to uprate pensioner personal allowance with the triple lock
The Conservative Party has said that if re-elected it would raise the pensioner personal allowance in line with the triple lock, reaching £14,340 by 2029-30 and cutting tax for around 8 million pensioners.
- April 2024
Capital gains tax allowance cut to £3,000 and dividend allowance to £500
The tax-free capital gains allowance falls to £3,000 and the dividend allowance to £500 from April 2024, the second cut in two years, meaning more people owe tax on investments and second homes.
Employee and self-employed NICs main rates cut as of April 2024
The main rate of employee National Insurance fell from 10% to 8% and the main rate for the self-employed fell from 9% to 6% on 6 April 2024, under an Act that received Royal Assent on 20 March 2024.
High Income Child Benefit Charge threshold increases to £60,000
The High Income Child Benefit Charge threshold rose from £50,000 to £60,000 on 6 April 2024, with the taper halved so the charge reaches the full Child Benefit amount at £80,000.
Around 429,000 workers start repaying student loans this April
Around 429,000 workers begin repaying student loans from April 2024, with Plan 2 graduates facing a 7.8% interest cap and a £27,295 earnings threshold before deductions.
Basic rate income tax cut proposed from April 2024
The Chancellor announced a 1p cut in the basic rate of income tax to take effect from April 2024, alongside a £3,000 rise in the National Insurance threshold from July 2022.
Canada Life research finds UK workers overpaid £5.8bn due to wrong tax codes
Canada Life research estimates UK workers overpaid £5.8bn to HMRC because they were on the wrong tax code, with almost a third of adults finding an error after checking.
Frozen Income Tax and National Insurance thresholds to take effect
Freezing Income Tax and National Insurance thresholds rather than uprating them by 6.7 per cent will raise £8 billion and cost basic rate employees £270, the Resolution Foundation says.
Further 2p cut in employee National Insurance contributions takes effect
A further 2p cut in employee National Insurance contributions, announced in the March budget, took effect in April, giving basic rate taxpayers an extra £606 a year from the combined cuts.
- March 2024
National Insurance Contributions (Reduction in Rates) Act 2024 receives Royal Assent
The National Insurance Contributions (Reduction in Rates) Act 2024 became law on 20 March 2024, cutting employee Class 1 contributions to 8% and self-employed Class 4 contributions to 6% from 6 April 2024.
Treasury makes consequential Class 2 NICs regulations
The Treasury made regulations on 14 March 2024 amending National Insurance law to reflect the end of Class 2 contributions for self-employed earners, coming into force on 6 April 2024.
Chancellor announces 2p National Insurance cut in Spring Budget
Jeremy Hunt used his Spring Budget on 6 March 2024 to announce a further 2p cut in National Insurance for employees and the self-employed, a change worth nothing directly to pensioners.
Consultation announced on household-based child benefit charge
Jeremy Hunt has announced a consultation on moving the high income child benefit charge to a household-based system by April 2026, alongside a rise in the individual earnings thresholds from April 2024.
Policy paper published on changes to First-time Buyers' Relief rules
HMRC has published a policy paper and draft legislation changing the rules for claiming Stamp Duty Land Tax First-time Buyers' Relief, covering leases held through nominees or bare trustees and the definition of a first-time buyer.
Spring Budget 2024 announces changes to the High Income Child Benefit Charge thresholds
Jeremy Hunt's Spring Budget raised the income threshold at which the High Income Child Benefit Charge starts, from £50,000 to £60,000, and the point at which Child Benefit is fully clawed back, from £60,000 to £80,000.
Spring Budget 2024 announces further two percentage point NICs cut and £3.4 billion NHS IT investment
The Spring Budget 2024 announced a further two percentage point cut in National Insurance Contributions and £3.4 billion for NHS IT, with NIESR calling it low-key and the NIC cut regressive.
HICBC threshold raised and taper halved at 2024 Spring Budget
The 2024 Spring Budget raised the High Income Child Benefit Charge threshold from £50,000 to £60,000 and halved the taper, so entitlement is now fully withdrawn at £80,000 a year.
- February 2024
Finance Bill 2023-24 receives Royal Assent
The Finance Bill 2023-24 received Royal Assent on 22 February 2024, becoming the Finance Act 2024 and enacting tax measures announced in the Autumn Statement.